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Infrastructure Development Act Under the Spotlight

October 11, 2021

The Presidency

Amendments to the Infrastructure Development Act, including new regulations, are in the pipeline.

President Ramaphosa announced this during an address at the Sustainable Infrastructure Development Symposium of South Africa 2021 in Johannesburg.

The president acknowledged that government recognizes that the “current policy and legal framework for public infrastructure is fragmented, with many overlapping institutional roles and poor accountability”.

According to the president, Infrastructure SA will, in the coming year, also be proposing amendments to other legislation, including the existing public-private partnership regulations.

“The regulatory framework intends to clarify roles and responsibilities among all relevant organs of state in the preparation, approval, procurement and delivery of large infrastructure projects and programmes, whether they are designed as public-private partnerships or for direct fiscal expenditure”, he said.

The president also indicated that the Infrastructure Fund currently has a project pipeline focused on areas such as student housing, water and sanitation, social housing and digital projects.

National treasury signed the Infrastructure Fund Memorandum of Agreement in 2020.

In a statement at the time, treasury declared that the signing “signifies a significant milestone for the country that is bringing together the key stakeholders to create a financing facility for blended infrastructure projects”.

The Infrastructure Fund is designed to serve as government funding and ancillary support for co-financing of blended finance programmes and projects.

“This includes financing from the local capital market and international financing institutions as a complement for broader budgeting reforms that the Government is undertaking to address problems in the infrastructure value chain.”

Via the Infrastructure Fund, government will provide support for co-financing of projects and programmes that blend public and private resources.

The president also announced that the Social Infrastructure Fund, under development, will initially prioritise education infrastructure.