A new “first-of-its-kind” project preparation bid window has been launched, inviting submissions from national and provincial government departments, state-owned entities, public entities, and municipalities – including energy projects – in a bid to accelerate infrastructure development across South Africa.
Public Works and Infrastructure Minister, Dean Macpherson, alongside Acting Head of Infrastructure South Africa (ISA), Mameetse Masemola, announced the initiative at a launch event in Johannesburg yesterday (October 15).
The initiative is designed to move beyond planning and discussions, providing the tools to get projects “shovel-ready” for efficient and effective implementation. “Working together with ISA, government will see more cranes in the sky, more roads being built and more renewable energy projects coming online,” the Minister said.
“This project preparation bid window is a game-changer,” he said, adding that for too long one of the major barriers to infrastructure development in South Africa had been the lack of sufficient project preparation support.
National Treasury has granted ISA a project preparation fund to accelerate the pace and quality of infrastructure delivery, Masemola said. The ISA plans to blend this seed funding with other project preparation facilities in the future to develop viable, bankable infrastructure projects.
The bid window builds on the 12 infrastructure initiatives announced by President Cyril Ramaphosa at the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) in March. These initiatives are supported by R179 million in project preparation funding allocated by the National Treasury to ISA, aimed at progressing catalytic projects that would otherwise face delays.
Priority sectors
Applications for the bid window are open for projects valued at over R1 billion, with the potential to attract investment from sources such as Multilateral Development Banks and Development Finance Institutions rather than relying solely on the national fiscus. Submissions can be made through the ISA website until December 6.
Successful projects will receive comprehensive preparation assistance, including funding structuring, technical and legal support, institutional and governance arrangements, capacity deployment, and regulatory compliance studies.
Energy has been listed as one of the priority sectors. Other sectors include water and sanitation, transport (major roads, airports, ports and freight transport), human settlements (excluding student accommodation), social infrastructure (education and health), industrial development zones, and special economic zones.
Municipal infrastructure projects with the potential to attract private-sector financing will be prioritised, the department said.
