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The Southern Africa Development Community (Sadc) has set up a special fund, dubbed the Project Preparation and Development Facility (PPDF), meant to finance processes undertaken before infrastructural projects are implemented such as feasibility studies, an official said on Thursday. Infrastructure Development Bank of Zimbabwe executive director for infrastructure projects Mr Des Matete said the fund targeted infrastructural projects in transport, energy, ICT, water and sanitation and tourism.

He said the fund would finance processes such as pre-feasibility studies, feasibility studies, economic and financial analysis costs, detailed design costs, tender preparation costs and legal and transaction advisory services costs.

Mr Matete said the Development Bank of South Africa had been appointed as the fund manager and implementing agent.
He said minimum funding for projects was $250 000. He said the fund came into existence following realisation that there was lack of funding for project preparation and packaging.
“The challenges are that no one wants to put money into a feasibility study,” he said.

“So, in light of that, there is this is a new kid on the block (the PPDF), which I wanted to discuss with you and let you know that the facility is now available.
“The facility was put together by Sadc. It is for all member countries and Sadc projects. One can also do the projects from outside Sadc as long the projects benefit the region,” he said.

He was addressing participants at the annual Mining and Infrastructure Indaba. Mr Matete said the fund became operational on September 1 and applications would be taken until October 30 for vetting. He, however, said another window for new applications would be opened.

“I think we are going to discuss whether or not we are going to provide a bigger window for you to prepare your packages,” he said.
He said priority would be given to those projects that can demonstrate employment creation within Sadc region.
“You also have to show that your projects will incorporate value addition,” he said.

Regional infrastructure development creates a larger market and greater economic opportunities.
The development of infrastructure is also critical for promoting and sustaining regional economic development, trade and investment, and will contribute to poverty eradication and improved social conditions. — New Ziana.