It has been deeply encouraging and inspiring to see the immense task of rebuilding the country from the ravages of the Covid-19 pandemic beginning to take form over the past few weeks.
Business For SA has also released plans for economic recovery, but warned that the immense amount of capital required will be raised only if SA presents a compelling investment case to domestic and international investors. B4SA estimates the funding required to implement the plan would be split between the public sector and the private sector .
But if we are to succeed as a country in meeting this challenge, we will need to work towards a model that focuses on value for money and delivering infrastructure affordably, without ordinary South Africans being forced to pick up excessive bills. This requires us going back to the most basic investment principles: effective risk mitigation in search of reasonable risk-adjusted returns for investors.
When the initial procurement of a project is not done correctly, investors are unable to balance the risks and rewards effectively. Investors need to know all the key risks are properly ring-fenced and allocated to the parties best placed to mitigate them. For example, cost overruns and delays are often inevitable in mega projects, so before any private investor commits capital they will need to know who pays for the overruns.
SA is also in the privileged position of benefiting from a rich pool of skills to draw on in executing PPPs. Leveraging skills in this specialised area of finance within companies involved in structuring PPPs — banks, law firms and developers — and matching their skills with experienced infrastructure investors will be key to releasing this immense potential.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
TSHEPO MAHLOELE: Private-public infrastructure deals must get it right from day oneProjects must not pass the risk of cost overruns on to end users
Source: BDliveSA - 🏆 12. / 63 Read more »
TSHEPO MAHLOELE: Private-public infrastructure deals must get it right from day oneProjects must not pass the risk of cost overruns on to end users
Source: BDliveSA - 🏆 12. / 63 Read more »
Minister Patricia de Lille unveils job creation projectsThe Public Works and Infrastructure Department has gazetted a list of Strategic Integrated Projects (SIP) that are expected to be rolled out over the next few months.
Source: IOL - 🏆 46. / 51 Read more »
De Lille suspends public works DG over state funeral spendingThe saga in the public works and infrastructure department continues, with minister Patricia de Lille on Tuesday suspending her director-general, advocate Sam Vukela.
Source: TimesLIVE - 🏆 28. / 59 Read more »
De Lille suspends public works DG over state funeral spendingThe saga in the public works and infrastructure department continues, with minister Patricia de Lille on Tuesday suspending her director-general, advocate Sam Vukela.
Source: TimesLIVE - 🏆 28. / 59 Read more »
Source: eNCA - 🏆 49. / 51 Read more »