Sixty infrastructure projects in KwaZulu- Natal, worth a collective R6-billion, have been showcased to national and international funders at an Infrastructure Funding Fair, which was held in Pietermaritz-burg on October 24.

KwaZulu-Natal Provincial Treasury GM for infrastructure management and economic services Clive Coetzee said the aim of the fair was to deal with infrastructure backlogs and to find alternative means of funding the provision of critical services, such as water and electricity to speed up associated residential and industrial developments.

“The provision of infrastructure leverages further development so each of these projects is a means to a number of ends,” he added.

The Infrastructure Funding Fair was the product of a partnership between Deloitte KwaZulu-Natal, the Provincial Treasury and the KwaZulu-Natal Department of Economic Development and Tourism. It followed the successful Business Funding Fair held in April, which unlocked R300-million in funding for corporate development projects. Ongoing negotiations following this event are expected to result in further loans.

Requests for a similar approach to accessing funding for infrastructure projects followed the conclusion of the Business Funding Fair, said Coetzee.

Fifteen provincial departments and munici-palities pitched the 60 projects.

Deloitte Corporate Finance senior manager Leon Bezuidenhout said the projects ranged from multibillion-rand initiatives, such as roads, bridges and new schools, to smaller projects that could resolve regional develop-mental issues and improve the quality of life for local communities. Smaller projects presented included the refurbishment of historically poorly maintained and dilapidated sewage treatment plants, community halls, libraries and museums.

The Richards Bay Industrial Development Zone and KwaZulu-Natal Sharks Board also submitted proposals to pitch projects at the fair.

Funders that attended included commercial banks and development finance institutions, such as the Development Bank of Southern Africa, the European Investment Bank, German government-owned development bank KfW, Ithala Development Finance Corporation and the Industrial Development Corporation.

“The Infrastructure Funding Fair included Chinese construction companies and banks, which typically bring their own financing options when developing projects. Indian and Brazilian construction com-panies are also increasingly active in Africa and were invited to attend,” said KwaZulu-Natal Deloitte Corporate Finance leader André Pottas.

He said companies operating in the built environment space, such as large construction companies, as well as industry bodies active in the engineering and construction sectors, were also invited.

In addition to short pitches to potential funders, participants also took part in an exhib- ition that provided opportunities for one-on-one discussions, as well as the showcasing of innovative technologies.

Coetzee said another objective of what the partners intended making a yearly event was to create debate around alternative forms of funding for government projects that fell outside those departments’ budget envelope. Up to now, the Municipal Infrastructure Grant (MIG) system was regarded as the only route; however, funding from the fiscus was more in demand but becoming increasingly scarce, with government bodies facing massive constraints.

Pottas added that MIGs may be sufficient to maintain existing infrastructure but could not facilitate the construction of new urgently needed infrastructure. “Service delivery has become a key issue. There has been a growing number of protests, so government is recognising the need to address this. “However, we have seen little investment in social infrastructure, resulting in problems with things like water quality and sewage treatment.”

In addition to more conventional funding mechanisms such as concessions and loans from local and international development finance institutions, Coetzee said the Infra-structure Funding Fair would investigate options, such as the establishment of a venture fund, the issuing of municipal bonds and the creation of public–private partnerships (PPPs) with both local and foreign investors.

He said PPPs were a vehicle that had been “heavily underutilised” in KwaZulu-Natal, adding that it was hoped that this event would tackle preconceived ideas and misconceptions.