Abstract:
This study is an evaluation of the feasibility of utilising project finance in a Public Private Partnership model (as one of a number of possible private public partnership models) in order to deliver social housing in the South African market by evaluating the social housing regulatory environment against the commercial requirements for implementing project finance based PPP‘s, and indentifying gaps that are acting as stumbling blocks to the mobilisation of private sector resources in this sector.
The study also looked at the social housing policy and the various private public partnership procurement models currently in use in the United Kingdom, with a view to highlight best practise and lessons which could be applied within the local environment.
The broader South African procurement policy environment caters for the private sector delivery of infrastructure, with a number of deals having been delivered since the late 1990‘s. The Social Housing Policy does make provision for the Minister to make pronouncement on procurement models to be used, and does foresee some form of partnership between the public and private sector in delivering affordable housing (this is also supported by policies such the Inclusionary Housing Policy). The current policy environment however does not go far enough in addressing commercial requirements, such as guarantees for rental payments, and performance monitoring instruments, such as housing inspectorates, to facilitate the implementation of housing PPP‘s. 138 pages.
