Budget Speech 2024Supporting Public Infrastructure Investment |
Madam Speaker, I am proud to announce that as part of this budget, we are introducing fundamental and far-reaching reforms to infrastructure financing and delivery.
The reforms are to optimise the infrastructure value chain to be effective and efficient.
In this way, we will strengthen the public investment management and the associated value chain. We will also attract private sector participation.
In this regard:
| • | We gazetted the amendments to the PPP regulatory framework for public comments earlier this week. The amendments seek to reduce the procedural complexity of undertaking PPPs, create capacity to support and manage PPPs, formulate clear rules for managing unsolicited bids, and strengthen the governance of fiscal risk. |
| • | We are reviewing institutional arrangements and governance for catalytic infrastructure. The intention is to create clearer mechanisms for accountability, cooperation and coordination. |
| • | We are also consolidating similar functions to reduce duplication and inefficiencies. The intention is to fast-track delivery, particularly of blended finance arrangements. |
| • | We are introducing several new financing instruments, such as infrastructure bonds and concessional loans. As part of this, a flow-through tax vehicle for specific infrastructure projects, similar to trusts and other investment vehicles, is being considered. |
| • | A new funding window for proposals under the new dispensation of financing instruments will be opened to public institutions shortly. |
Through these reforms, greater efficiency gains and infrastructure delivery will be fast-tracked.
This will benefit network sectors, social infrastructure, PPPs and blended finance projects.