The DBSA has created a Project Preparation Fund unit to provide funding for infrastructure projects. The unit was created to support the pipeline of DBSA’s financing divisions.
The DBSA project preparation funds are earmarked for projects which the DBSA’s financing divisions can include in their pipeline. The funds are intended to be used for the following;
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Creating an enabling environment for infrastructure projects to implemented
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Conducting pre-feasibility studies
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Conducting bankable feasibility studies
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Assistance with costs to reach financial close
About Project Preparation
The demand for infrastructure development in Africa is extensive and one of the key bottlenecks is the development and preparation of bankable projects. In addition, the planning and delivery of large infrastructure projects is complex and fraught with risk.
Hence, many projects fail or are implemented with budget and timeline overruns. Over time, many DFIs have tried to fill the space where government capacity is low and risk is high. Although this landscape is evolving and expanding, current DFIs in Africa have not proven a large scale successful model.
This need and these challenges translate into an opportunity for the DBSA to create a high-skill, scaled-up, end-to-end project development and preparation business that de-risks projects and delivers project concepts to bankability.
Objectives
Support the de-risking of infrastructure project and deliver project concepts to bankability.
Major services
- Project indentification
- Feasibility assessment
- Technical assistance
- Financial structuring
- Managing project preparation funds
- Security as mandated lead arranger role for DBSA
Source: www.dbsa.og
Development Bank of SA (Owner)
