More than R7-billion in funding for key infrastructure projects in KwaZulu-Natal is waiting in the wings, with billions more likely to follow the second KwaZulu-Natal Infrastructure Funding Fair, audit and consulting firm Deloitte has said of the event, which it is currently hosting in Pietermaritzburg in partnership with the KwaZulu-Natal Treasury.
Deloitte regional corporate finance leader Andre Pottas highlighted that projects valued at some R22-billion had been pitched to funders at the event on Thursday.
Projects worth R36-billion were presented to potential financiers at last year’s event.
“Investors want big-ticket projects that guarantee a return on investment and the Infrastructure Funding Fair provides the platform for the formation of public–private partnerships, which complement government’s limited resources.
‘This enables the acceleration of infrastructure development, the division and sharing of risk and ensures full asset life maintenance as well as strict performance standards that ensure efficient delivery,” Pottas said.
Eighteen proposed water and road infrastructure projects were presented at the event, including all-weather river crossings in rural KwaZulu-Natal, road infrastructure upgrades on the Sani Pass and development of the R34 corridor between Richards Bay and Melmoth.
The uMhlathuze municipality and the departments of Transport and Education were the main participants.
KwaZulu-Natal Treasury infrastructure funding specialist Tim Madgwick added that R1.2-billion in funding from the European Union (EU) and the Development Bank of South Africa had been committed to the development of the province’s Dube Tradeport and was in the process of being finalised, following the presentation of the first phase of this project.
“An application for the second phase of funding for this project had also been submitted,” he outlined.
In addition, a R120-million grant had been secured from the EU for the development of infrastructure integral to the establishment of technology hubs in Pietermaritzburg, Port Shepstone, Richards Bay and Newcastle.
The Newcastle technology hub would centre on a 69 ha glass house project, while the hub in Pietermaritzburg was designed around cycling and would see the construction of a cycling velodrome.
The Durban University of Technology, meanwhile, planned to set up an aviation academy in the Pietermaritzburg technology hub.
Other success stories from last year’s infrastructure fair were the R23-million Shayamoya Industrial Park and the R25.7-million Kokstad Light Industrial Park.
Medical facilities played a major role in the inaugural 2013 funding fair and Pottas and Madgwick said success stories here included the expected finalisation of funding for the R3-billion Edendale Hospital, in Pietermaritzburg, and the R1.8-billion Dr John Dube Hospital, in Inanda.
Madgwick added that the 2014 KwaZulu-Natal Infrastructure Funding Fair projects, as well as those from last year that were still active, were particularly important when it came to creating a pipeline, or database, of projects.
“We need an intake of projects to get these into a bankable state and we even appoint consultants to assist through our specialist team,” he commented.