Municipal master plans critical for private-sector investment

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EMEKA UMECHE | Municipalities can directly increase private sector investment by developing financially viable project pipelines via the development of well-defined infrastructure master plans which depict the necessary prioritised project pipeline.

Even the DBSA as part of its requirement for funding infrastructure projects requires the project to be identified in the municipality's integrated development plan.

The private sector is apprehensive of fragmented project rollouts as these have a higher risk of being set aside if not properly laid out and aligned to overall municipal development. The identification and communication of viable projects, which can be presented to the private sector is a major hinderance. Infrastructure master plans provide opportunities for municipalities to communicate viable projects to the private sector in a formal way, in order to attract investment from this sector.

Infrastructure master plans must be seen as the initial step in the process of defining and prioritising projects, which could be presented to the private sector. This will ensure that these plans go beyond the stage of just being drafted and shelved but rather be viewed as a blueprint for economic development via presenting identified projects in a structured manner.

This ensures that potential investors from the private sector are aware of these projects, and the communication gap that hinders the private sector from knowledge of these projects can be curtailed. There is evidence from other countries that where public bodies and agencies have provided appropriately developed project pipelines, which identify and prioritise projects, they have seen a notable growth in private-sector investment in infrastructure projects.

 

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