|What is the Critical Infrastructure Programme?
The Critical Infrastructure Programme (“CIP”) provides cost-sharing grant funding for infrastructure deemed critical to unlock future investment projects and is administered by the Department of Trade, Industry and Competition (“DTIC”).
Amendments to Critical Infrastructure Programme guidelines
Recent amendments to the CIP guidelines (effective May 2021) widened the scope of support to include infrastructure addressing the economic impact of the COVID-19 pandemic (e. g infrastructure that supports the hard-hit tourism sector), clean/green energy infrastructure, film and cinema infrastructure and strategic infrastructure feasibility studies (including pilot plants). Under the amended guidelines applicants must be at least a level 6 BEE contributor at application and at claim stage compared to a level 4 BEE contributor under the previous guidelines.
Critical Infrastructure Programme Support
The CIP grant is capped at R50 million and offers between 10% and 30% for investments in critical infrastructure, 60% towards strategic infrastructure feasibility studies (80% for project’s inside SEZ’s) and 30% towards film and cinema infrastructure. Applications made by distressed municipalities could enjoy support as high as 100%.
Infrastructure is deemed critical if an investment project would not take place or operate optimally without the infrastructure and refers to structural foundations or permanent network facilities via which business and society in general receive or supply basic services such as transport, electricity, water, sanitation, telecommunications, etc. Examples include roads, bulk water infrastructure, energy generation infrastructure alleviating dependency on the national grid, shared wash or processing plants linked to mining beneficiation operations as well as shared silo’s / irrigation / cold storage / reservoirs linked to agro-processing.
Things to consider prior to submitting an application
A completed application form with supporting documents must be submitted and a CIP site visit be conducted before construction on the project can commence. All the required permits from relevant authorities, tax clearance and BEE certificate in addition to the normal compliance documentation is needed to complete an application.
Contact Catalyst Solutions if you are planning an infrastructure related project and are interested in accessing the CIP or other grants.