Infrastructure projects ‘need public-private partnerships’

Posted On Tuesday, 02 September 2008 02:00 Published by eProp Commercial Property News
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Private and public sector partnerships are among the quickest ways for SA to fund major infrastructure projects and underpin economic growth.

Infrastructure IndustryPrivate and public sector partnerships are among the quickest ways for SA to fund major infrastructure projects and underpin economic growth, says Morgan Stanley senior executive Gautam Bhandari.

“Private and public participation in infrastructure development is a successful model that can be applied in SA and other countries in the region," he said.

Bhandari, who will be based in Mumbai, was recently appointed to head a division that identifies infrastructure investment opportunities in India, the Middle East and sub-Saharan Africa.

A survey released last week showed a surge in investment spending in SA despite power constraints. At least 80 new projects worth R336bn have been announced since the beginning of the year, compared with only R194bn for the whole of last year.

The new projects range from transport and energy infrastructure, manufacturing and mining.

Eskom alone has a budget of R343bn for infrastructure spending over five years, with at least 70% of it going into power generation.

Bhandari said infrastructure problems in sub-Saharan Africa were immense and governments facing fiscal constraints to finance the provision of basic and essential services should consider partnerships with the private sector.

Such co-operation was beneficial to sustained economic growth.

“Despite the economic slowdown, we see significant opportunities to invest in and work with strong local infrastructure development companies. We believe that the infrastructure needs of India, the Middle East and subSaharan Africa are immense because the demand for enhanced infrastructure is driven by long term, secular trends. These include young and growing populations, as well as a rapidly expanding middle class in each of these markets," Bhandari said.

“I think five or even 10 years ago, nobody would have imagined investment in infrastructure on such a scale. I believe there is scope for co-operation between the public and private sectors, given the constraints of governments and the pressure to provide basic services.”

Bhandari said Morgan Stanley considered SA an important market where it would continue exploring for investment opportunities.

“We are going to spend more time getting to know the opportunities that we believe exist."

 

Last modified on Friday, 01 November 2013 08:52

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