Public Works and Infrastructure Minister Dean Macpherson has stated his approval of Finance Minister Enoch Godongwana’s amendments to Section 16 of the Public Finance Management Act, which will make it easier for public-private partnerships (PPPs) under the value of R2-billion to gain approval, and for unsolicited bids to be submitted to the State.

In a statement released on February 11, Macpherson said the amendments aligned with the work the Department Public Works and Infrastructure (DPWI) had undertaken over the past seven months to attract additional private-sector funding towards infrastructure investment.

The new regulations, which will come into effect in June, will create a separate approval process for PPP projects with an estimated total cost of less than R2-billion, exempting these projects from having to obtain Treasury approval.

However, the projects will still be required to engage with the Treasury’s PPP Advisory Unit, thereby significantly reducing the procedural complexity of implementing PPP projects.

Further, the amended regulations allow for unsolicited bids to be submitted for the creation of PPP projects.

“The move by the National Treasury will greatly assist the DPWI in achieving our goal of attracting an additional R100-billion in private infrastructure funding during the seventh administration.

“It is clear that the State lacks the financial resources to fund new infrastructure projects alone, and therefore, additional PPPs will help us realise our vision of turning South Africa into a construction site that will grow the economy and create jobs,” Macpherson said.

He said the amendment of the regulations proved that the Government of National Unity was actively taking steps to improve the country.

“These new regulations signal to the private sector that we are serious about enabling investment into South Africa and that we are open to new ideas from the private industry on how to optimise State infrastructure and assets. I look forward to engaging with the private sector in the weeks ahead to explore how they can contribute to funding public infrastructure,” Macpherson said.

He noted that these regulatory reforms, which had been long advocated for by the private sector, were among the many efforts being made by the DPWI to get more cranes in the sky and shovels in the ground.

These efforts include engaging with foreign development financiers, such as the Asian Infrastructure Investment Bank, which has yet to fund any projects in South Africa, and directly intervening in municipalities to ensure more projects are completed.

“We are taking decisive action to achieve our vision of a reignited South Africa, where infrastructure investment drives economic growth and builds a better future. Soon, communities across the country will start to experience the impact of a revitalised construction sector,” Macpherson said.