New financing facility to address weaknesses in infrastructure delivery
The government is proposing the creation of a new financing facility for large infrastructure projects that require state support, including state guarantees. The proposed facility is aimed at addressing current weaknesses in infrastructure delivery related to project preparation and the technical aspects of planning, execution and delivery. These weaknesses result in the poor estimation of lifecycle costs; failure to budget effectively for capital, operating and maintenance costs; and poor implementation and management. Treasury deputy director-general for public finance Dondo Mogajane outlined the proposal to Parliament’s appropriation committee on Wednesday. "The facility will help government build a pipeline of projects that have undergone rigorous technical analysis," he said. It would involve reforming the budget process in a way that created institutional capacity to appraise and budget for priority infrastructure projects funded by government. "The facility will put in place...
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