In 2014, the Department of Water and Sanitation identified that more than R600 billion was required to address water and wastewater infrastructure challenges in South Africa. However, the fiscus is only able to provide for half of this, resulting in a large capital funding gap. Public-private partnerships could potentially be utilised to bridge the funding gap.
A public-private partnership (PPP) is a contract between a public-sector institution and a private party, where the private party performs a function that would normally be undertaken by the public sector. The private party, often provides skills and technology, but can also be required to provide capital for the development of infrastructure within a risk-sharing arrangement.
Bosch Capital recently presented on the potential to utilise the PPP model for desalination projects in South Africa at a symposium in Cape Town. The group also hosted the KZN Roundtable discussion on the Kopano ya Metsi project focused on understanding the challenges that currently hinder private investment in the water sector in South Africa.
Bosch Capital aims to work with relevant parties in South Africa, including development finance institutions, government and the private sector, to interrogate the viability of projects for implementation through PPPs. Our team has the requisite technical capability and funding networks to structure PPP projects.