GTAC provides specialised analytical support to its key client, the National Treasury, for the assessment of proposed large infrastructure investments. Project appraisals of megaprojects are undertaken to determine the likely economic and financial viability of the project, particularly where financial support of one form or another is being requested from the fiscus. We also perform related types of analysis, such as the likely impact of infrastructure investments on the financial sustainability of public utilities, financial cost comparisons of different elements of proposed investment programmes, and potential funding mechanisms for infrastructure projects and programmes.
Key focus areas include:
- Capital projects appraisal to determine the financial and economic viability of a proposed new infrastructure investment;
- Assessment of the likely financial and economic sustainability of an infrastructure investment programme from a sectoral, corporate and national perspective;
- Assessment of the likely fiscal requirement or impact of different types of infrastructure projects;
- Assessment of the suitability of public or private financing mechanisms for different types of projects.
GTAC’s aim is to ensure that support is provided to government in identifying public projects that offer the greatest value for money and contribute the most towards promoting economic growth and social welfare. Capital Projects has developed in-house methodologies for assessing projects and programmes, and aims to be part of developing national and global best practice in the field, including cost benefit analysis and cost-effectiveness analysis. In addition, capacity is being built to assess the range of existing and new financing mechanisms that can be utilised for different project types.