Copying and distributing are prohibited without permission of the publisher
Funds wanted
01 August 2003
South Africa's PPP programme is blessed with solid banks that can offer long-dated money and advisory expertise. But lack of third-party equity will make ambitious programmes hard to develop. Marisa Rodrigues reports.
Read more:
[PPP]
[BOT]
[project finance]
[project finance]
[limited recourse]
With a well-developed financial debt market, solid legal and
regulatory framework and strong political support, the PPP
programme in South Africa has all the potential to address the huge
infrastructure and service delivery backlog in the country,
estimated at well over R100 billion ($12.2 billion). However,
issues such as the lack of equity to support all the proposed
projects and high costs in project preparation and implementation,
may stymie project development.The Standardised PPP Provisions, a
legal document governing the relationship between private and
public entities, was released by government for comment in May and
will look to address some of the issues.
The South African market was introduced to PPPs through toll road
projects, with the first, the Maputo Corridor (N4 East), financed
in 1998. The concessionaire Trans-Africa Concessions (TRAC) is in
the process of looking to refinance and has appointed SG as
advisor. If successful, it would be the first...
Take a free website trial to read this article. It’s easy to get a trial – just follow this link or email info@projectfinancemagazine.com.
Or, if you’re a subscriber or have an active trial, simply log in below to read the article.
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Subscribe
Free trial
Taking a free trial will give you access to the latest news and analysis, as
well as the online deals database, BenchBase. Start your free trial today.
Free Trial