R24bn allocated to Infrastructure Fund blended finance projects

Source: albertus engbers © 123RF.com

This is according to public works and infrastructure minister Patricia de Lille who held a media briefing recently to update journalists on progress made over the past year on various projects in the Infrastructure Investment Plan.

The Infrastructure Fund was announced in 2019 as a ring-fenced division of the Development Bank of Southern Africa (DBSA) and operationalised in 2020 with a commitment of R100bn from government over a 10-year period.

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.

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Among 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 R3bn was considered. The BFI approved amount was R900m from the Infrastructure Fund over two financial years.
  
• For the 2022 Budget, the following projects were considered by the relevant BFI committees: a social housing programme worth R1.1bn. The Budget Facility for Infrastructure approved an amount of R304.5m over the next two financial years from the Infrastructure Fund.
  
• Lepelle Northern Water with a total project cost of R4.5bn. The Budget Facility for Infrastructure approved an amount of R1.4bn over the next three financial years from the Infrastructure Fund.