The architecture for water infrastructure funding models was designed to meet the challenges presented by urbanization and the growing imbalances that exist between the supply of and demand for water in South Africa.
The economic issues involved with the implementation of the water both arise from strategic and operational management challenges. Some of the management problems must be adequately addressed by water service providers and municipalities:
The economic viability of the water infrastructure solution
Sound Strategic Planning
Adaptive Funding Models
Implementable Pricing Policies
Water infrastructure is capital intensive, with finance necessary to cover upfront construction costs that are typically repaid over long periods. The water sector is the prime driver in the economy, private sector investment in the form of Build Own Operate (BOO) schemes through Public Private Partnerships (PPP), can help mitigate the economic issues associated with water infrastructure operations.
The establishment of special banking packages for financial institutions to underwrite with low interest loans, are helping with the acceleration and the implementation of infrastructure in South Africa.
Infrastructure funding can also be achieved through the issuing of bonds and accessing capital markets for specific and dedicated financial assistance.
The application of incentives to stimulate investment is a proven roadmap to sound water management practices. MEB’s final goal of focus, comprises of multiple elements that identify and solve acute issues that are associated with barriers to entry in the water sector. Structural and operational changes for enhanced water conservation can be sustainably achieved with the right technology partner. Chat to our team of professionals!