Development bank worried about backlog.

Posted On Friday, 11 July 2003 02:00 Published by eProp Commercial Property News
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Lender disbursed R1,8bn last year.

 

Mandla GantshoSA has an infrastructure backlog of about R170bn and needed government and private sector support to deal with it, the Development Bank of Southern Africa (DBSA) said yesterday.

 Government and private sector partnerships were critical because local authorities did not have the resources or the capacity to address the problem on their own, it said.

 The backlog means many South Africans do not have access to services such as running water, schools and electricity.

 The DBSA, which is government's primary lending vehicle for infrastructure projects , said it was going to establish a "knowledge institution" in the next year with the aim of "unlocking capacity" of local municipalities.

 By teaching its municipal clients how to function efficiently, the bank hopes to create a viable market for its credit.

 DBSA CEO Mandla Gantsho said although the centre would initially cater for municipalities, the programme would be extended to other authorities in the southern African region.

 Gantsho said SA's huge infrastructure backlog needed concerted effort from all role players, particularly the private sector.

 He said over the past decade private sector participation in the provision of infrastructure services had been accepted internationally as an effective model.

 Last year the bank disbursed R1,8bn for infrastructure and other projects . It also approved additional loans of R3bn.

 The DBSA is also involved in supporting infrastructure development projects in all 14 member states of the Southern African Development Community (SADC).

 Some of the key projects that it has supported include the Lesotho Highlands Water project and the Mozal smelter project in Mozambique.

 In addition to this, DBSA also gave development support to its counterparts on the African continent.

 Last year the bank signed a memorandum of understanding with the East African Development Bank aimed at bolstering co-operation between the two to support the needs of countries such as Uganda and Kenya.

 The deal was also aimed at helping develop regional co-operation on the development of infrastructure projects.

 Gantsho said that the DBSA's ultimate goal was to improve the quality of people's lives on the African continent.

 "We will seek to mobilise greater resources to help fight the war on poverty and improve the quality of life of people in SA and in the region ."

 Gantsho said the bank wanted to extend its mandate beyond SADC region to include other parts of Africa.

 He said a proposal to this effect had been submitted to the finance ministry.

 

Last modified on Thursday, 15 May 2014 12:10

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