R24 billion allocated to infrastructure projects

Public Works and Infrastructure Minister Patricia de Lille says R24 billion has been allocated to the Infrastructure Fund for blended finance projects that will include student accommodation and so­cial housing. 

Minister De Lille said this while providing an update 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," said Minister De Lille.

The Infrastructure Fund was operationalised in 2020 with a commitment of R100 billion from government over a 10-year period.

Minister 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.

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 R900 million from the Infra­structure Fund over two financial years.
  • For the 2022 Budget, a social housing pro­gramme worth R1.1 bil­lion. The BFI approved an amount of R304.5 million over the next two financial years.
  • Lepelle Northern Water with a total project cost of R4.5 billion. The BFI approved an amount of R1.4 billion over the next three financial years.

The Infrastructure Invest­ment Plan forms a central part of the Economic Re­construction and Recovery Plan aimed at stimulating economic growth and job creation.

The projects within the Infrastructure Investment Plan were gazetted as Stra­tegic Integrated Projects (SIPs), in line with the In­frastructure Development Act, in July 2020.

“The projects have been gazetted as SIPs to contri­bute to economic growth by reviving the construc­tion sector and creating much needed jobs for people,” said Minister De Lille.

She added that 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. - SAnews.gov.za