SA Affordable Housing January - February 2019 // Issue: 74 - Page 30

INDUSTRY MATTERS Making PPP work for you In the 1990s the Public Private Partnerships (PPP) model was considered by the South African Government as one method to deliver infrastructure projects. By Ramodise Mekoa, general manager, Dipalopalo FM Solutions at Stats SA Stadium costs for 2010 were in excess of R35-billion. S ince the 1990s there has been a steady growth of PPPs. Examples of projects financed using the model include the Gautrain, the Maputo Development Corridor and the Department of International Relations and Cooperative Governance (DIRCO) head office in Pretoria, among others. The effectiveness of PPPs was demonstrated as far back as 1999, with Blue IQ. Blue IQ (now known as Gauteng Growth and Development Agency) was founded to roll out a very complicated Strategic Economic Infrastructure Plan for Gauteng province. At the time, PPPs were considered still in their infancy. However, following the endorsement by Treasury of the PPP strategic framework in 1999, international investment began to look 28 JANUARY - FEBRUARY 2019 promising. The Gautrain Rapid Rail Link, which was conceived by Blue IQ, has been South Africa’s biggest PPP estimated at R23-billion, with a successfully operational transport system that has been functional since 2010, just in time for the Soccer World Cup. Interestingly, the greater infrastructure that was built for the 2010 Soccer World Cup, particularly the stadia which were built around the country, cost in excess of R35-billion, a cost which the government carried alone. It was later found that the construction companies had colluded and rigged bids to benefit themselves. But would this have happened if they shared the costs, the risks and what will hopefully become long term benefits?