The Infrastructure Fund, a blended finance platform created through a partnership between the Development Bank of Southern Africa (DBSA), the National Treasury and Infrastructure South Africa, has secured a R550-million grant from Dutch impact investor Invest International to support the implementation of the City of Johannesburg’s (CoJ's) Alternative Waste Treatment Technology (AWTT) project.

Valued at about R5.7-billion, the AWTT project marks a significant milestone in South Africa’s transition towards sustainable waste management and renewable energy.

Implemented through a public-private partnership between the Infrastructure Fund, the CoJ and the private sector, the project aims to divert at least 500 000 t/y of municipal solid waste – about 31% of Johannesburg’s total yearly waste – from landfill sites.

The project will comprise a dirty materials recovery facility and a waste-to-energy facility that will be designed, built, financed, operated and maintained by a private-sector partner over a 25-year concession period. Ownership of the facilities will ultimately revert to the CoJ at the end of the agreement.

Through the conversion of residual waste to energy, the project will generate about 28 MW of electricity. This initiative will extend the lifespan of existing landfill sites, reduce methane emissions and align the city’s operations with international environmental and emissions standards.

The R550-million grant from Invest International will assist the city in fast-tracking project implementation, improving affordability through reduced gate fees, and advancing the initiative to the procurement phase to appoint a preferred bidder.

“The Infrastructure Fund continues to demonstrate how innovative financing structures can address municipal infrastructure challenges at scale. This project not only supports Johannesburg’s waste management and energy needs but also illustrates how blended finance can unlock transformative, sustainable solutions for South Africa’s cities.

"As the Infrastructure Fund, in partnership with the DBSA’s project preparation division, we continue to work with our partners across South Africa in finding sustainable solutions that serve generations to come,” comments Infrastructure Fund chief investment officer Mohale Rakgate.

“The CoJ appreciates this funding milestone from Invest International, as it will assist the city in promoting waste hierarchy through waste recycling; extend the life of the existing landfills by diverting municipal solid waste away to a waste energy facility and, in the process, comply with COP 27 emissions standards and objectives; and, most importantly, generate energy for the residents of the city,” states CoJ Mayor Dada Morero.

“The Kingdom of the Netherlands is proud to be able to contribute to the sustainable economic development of South Africa, specifically the CoJ through this flagship project using a grant, implemented on behalf of the Ministry for Foreign Trade and Development Cooperation of the Netherlands through Invest International,” adds Netherlands Foreign Trade and Development Cooperation Minister Aukje de Vries.