Can Gauteng government persuade investors to give it cash?

16 July 2015 - 13:24 By Penwell Dlamini

Delegates have started pouring in at the inaugural Gauteng Infrastructure Investment Conference in Midrand today. Already an estimated 1000 people have arrived to discuss the future of Gauteng's infrastructure development.The conference‚ has been called by Gauteng Premier David Makhura and will feature provincial government departments‚ investors from across the sectors and the general public.Among the guest is Minister in the Presidency Jeff Radebe‚ Tshwane executive mayor Kgosientso Ramokgopa‚ Joburg mayor Parks Tau‚ Ekurhuleni mayor Mondli Gungubele and the entire executive of the Gauteng provincial government. Makhura wants infrastructure projects in the province‚ to be coordinated and not sporadic.Through the conference‚ to be held at Gallagher Estate in Midrand‚ financial institutions‚ property developers‚ entrepreneurs and other private sector role players will get know which projects are coming in the future and where does government need partnerships.In the current budget there is about R10-billion for infrastructure investment by Gauteng provincial government.If metros are included‚ another R20-billion is available to spend on capital projects. While a total of R30-billion a year may look like a big figure‚ the money is not enough to deal with infrastructure backlog required by the province.Another hurdle is that provincial government‚ by law‚ is not allowed to issue bonds in the market like municipalities as its debt becomes part of sovereign debt declared National Treasury.This means provincial government has to find alternative ways to get money to fund its infrastructure projects. The best solution for this is through public private partnerships.Investors and the entire business community will also be able to know where provincial government has identified growth potential for Gauteng and which areas have reached their limits...

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