Budget Speech 2025 > Public-Private Partnerships

The new regulations for public-private partnerships (PPPs) have been finalised and will take effect on 1 June 2025.

The regulations reduce the procedural complexity of undertaking PPPs, create capacity to support and manage PPPs, create clear rules for managing unsolicited bids, and strengthen fiscal risk governance.

The regulations also make provision for national departments to establish sector-specific PPP units. These units will drive private sector participation (PSP), creating opportunities to optimise the balance sheets of financially distressed state-owned companies.

The Department of Transport and Transnet will engage the market on PSP projects in the following areas:

•	The ore, chrome, coal and manganese lines.

•	Expansion and automation of the ferrochrome and magnetite terminal at the port of Richards Bay.

•	The container and automotive sectors, including the potential designation of the SA container port system as a regional trans-shipment hub for major shipping lines.

•	And establishment of independent rolling stock leasing company.

Should Transnet require gap funding for its PSP projects, the Budget Facility for Infrastructure (BFI) will consider these after proper packaging and financial structuring.

Additional guarantees may also be considered to refinance the entity’s maturing debt as well as its capital investment programme.

In the energy sector, the Independent Transmission Programme will be launched later this year.

A request for information for a multi-line transmission package will also be issued by the Independent Power Producers Office in July this year, followed by a request for proposals in November.

These will enable the private sector to play a key role in the expansion of the transmission network.