Photo by: Duane Daws
State-owned Development Bank of Southern Africa (DBSA) has agreed to part with skills and funding to accelerate parastatal Transnet’s multibillion-rand private sector participation (PSP) infrastructure investment programme.
The development bank would provide funding and expertise for the PSP preparation work, including transaction advisory services, to enable the freight logistics company to successfully partner with the private sector in deploying certain infrastructure under its R300-billion Market Demand Strategy (MDS).
“Finding innovative funding solutions is a key element of the MDS. Partnerships with the private sector will not only broaden our sources of funding for capital investments, they will give us access to private sector skills and expertise,” Transnet acting group CEO Siyabonga Gama said in a statement on Monday.
The agreement would see DBSA share in project preparation funding; contribute financial and project management skills and capacity; provide indicative terms and amounts to expedite funding of PSP project execution; and provide strategic support for the execution of Transnet’s PSP programme.
The initiative would also enable Transnet to manage risks and provide alternative procurement tools for large infrastructure projects.
“Increasing private sector participation in South Africa’s infrastructure investment programme is part of DBSA’s mandate as a development finance institution. In addition, once a project is ready to go to market, DBSA will also be eligible to compete as one of the funders,” added DBSA CEO Patrick Dlamini.
The projects in the PSP portfolio included the manganese common user loading facility, in the Northern Cape; the Grootvlei coal loading facility, in Mpumalanga; the Tambo Springs inland container terminal, in Ekurhuleni, Gauteng; and the container terminal at the Durban Dig-Out Port.