Abstract
M.Tech. (Construction Management)
Infrastructure development plays an essential role in any developing economy. Inadequate infrastructure investment excludes inhabitants from flourishing economically, thus negatively affecting the economic growth of communities and the nation at large. Without financial means to construct, maintain and restore public urban infrastructure, inhabitants continue to struggle. Therefore, the purpose of this study was to assess the current urban infrastructure financing sources and recommend the most effective options for water infrastructure development in South Africa. The data used in this study was derived from both primary and secondary sources. Primary data was collected using a structured questionnaire, from which the questionnaire was developed through the review of literature. The structured questionnaire was distributed physically and using google form. Out of the 150 questionnaires distributed, 96 were returned. However, 91 of the 96 questionnaires were usable, representing a 64% response rate. A quantitative approach was used for this study. Data from the research was analysed using descriptive statistics and exploratory factor analysis. Findings from the data analysis revealed that national government, provincial government, local government and para-state agencies are essential stakeholders of financing public urban infrastructure. In addition, the World Bank, development banks, the building and construction sector, infrastructure investors and civic associations were also pivotal stakeholders of public urban infrastructure financing. The study also showed that the level of awareness and usage of the traditional procurement system, develop and construct, management contracting, construction management, project management and public-private partnerships are recognisable procurement systems in the South African infrastructure projects. Likewise, the study revealed that the level of awareness and usage of local tax revenues and tariffs, inter-governmental transfers, user charges, municipal borrowing, debt financing, public-private partnerships and market instruments were important for financing public urban infrastructure projects. Furthermore, insufficient municipal revenue, insufficient investment laws, corruption, weak project structuring, inadequate risk-adjusted returns and extreme state guarantees on debt repayment were revealed as alarming challenges delaying public infrastructure investment in South Africa. Finally, legal frameworks stipulating policy continuity, clear legislation for private participation, political willingness, accountability, transparency and strong institutional arrangement from all spheres of government were identified as critical success factors for financing public urban infrastructure through public-private partnerships. The findings clearly revealed that government remains the custodian of...