Transnet and the Development Bank of Southern Africa (DBSA) signed an agreement to accelerate Private Sector Participation (PSP) in its multi-billion Rand infrastructure investment programme.
Within the agreement, DBSA will share in project preparation funding, contribute financial and project management skills and capacity, provide indicative terms and amounts to expedite funding of PSP project execution and provide strategic support for the execution of Transnet’s PSP programme.
”Finding innovative funding solutions is a key element of the Market Demand Strategy (MDS). Partnerships with the private sector will not only broaden our sources of funding for capital investments, they will give us access to private sector skills and expertise,” Transnet Acting Group Chief Executive, Siyabonga Gama said.
Increasing private sector participation in South Africa’s infrastructure investment programme is part of DBSA’s mandate as a development finance institution. In addition, once a project is ready to go to market, DBSA will also be eligible to compete as one of the funders.
The R336 billion (USD 28.4 billion) Market Demand Strategy of Transnet involves the realization of infrastructure projects in South Africa.
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