Ukulungisa Project Preparation Fund
Ukulungisa Project Preparation Fund (UPPF) is a joint venture which is funded by the Business Trust. The bulk of UPPF’s preparation funding is committed to 24 infrastructure projects in 12 municipalities in 3 provinces potentially benefiting 104,605 disadvantaged households and with potential capital leverage of over R910million. R196 Million in capital funding has already been leveraged for 6791 beneficiary households in 3 of these projects.
Ukulungisa’s core business is to fund and manage the preparation of selected municipal infrastructure projects. There is significant flexibility in terms of the types of infrastructure projects, which are eligible for support from Ukulungisa, but there is particular emphasis on those which address poverty and basic service backlogs (e.g. water supply, sanitation, housing, roads, bridges, and water or sewerage treatment installations or upgrades). All potential projects are subjected to careful pre-screening before preparation assistance is made available from Ukulungisa.
Ukulungisa funds and manages the entire project preparation process for the Municipality. This includes the management of suitable consultants / project preparation teams. This assistance is provided in terms of a bilateral agreement either directly with the Municipality or else with a service provider contracted to the Municipality.
The project preparation assistance provided by Ukulungisa is unique in that it is fully funded and does not expose the Municipality to any financial risk. An agreed project preparation fee is payable to Ukulungisa only when a particular project succeeds in obtaining an approval of capital funding for project implementation. This fee consists mainly of the direct budgeted cost of project preparation teams (including all specialist reports and preliminary design work required).
The preparation work undertaken consists of all the activities required to ensure that a project is viable and appropriate, and that capital funding is secured. This includes project screening, pre-feasibility, feasibility, concept design and business plans.