Eligible Entities

All SADC Member States are eligible for PPDF financing as long as the proposed activity is intended to support regional infrastructure development in the energy, transport, water resources, ICT, TFCAs, and other areas not falling within the scope of these sectors but identified as of regional significance in the SADC infrastructure sector plans. The RIDMP will be used to identify the region’s priorities.

The following entities will be eligible:

  • Governments of SADC Member States and their agencies;
  • Regional Institutions promoted by Governments of SADC Member States;

A private sector applicant may not apply for funding under the PPDF. However, projects proposed by private sector organisations, and involving the participation of the public sector (Public-Private Partnerships (PPPs)) would be eligible for financing under the PPDF on the condition that the applicant has a letter of support from the respective government’s representative to be attached to the application.

Eligible Territories

Projects are expected to take place within the boundaries of the SADC Member States. However projects taking place outside the boundaries of the Member States but for the benefit of SADC Member States will also be eligible.

Beneficiary Contribution and Ceiling of Grants

To ensure ownership and commitment by the beneficiary, it shall be a requirement that they contribute a minimum of five percent (5%) in monetary terms of the total cost of the proposed preparatory activity. This amount will exclude any tax related implications.

The PPDF will finance major service contracts only. The minimum grant amount to be considered for support will be USD 250,000. The financing structure must point out how the entire project is going to be financed and must specify the quota of financing expected from the SADC PPDF as well as the 5% to be financed by the beneficiary.

ELIGIBILITY OF COSTS INCLUDED IN THE BUDGET

Only “eligible costs” will be taken into account in the calculation of grants. The eligible costs to be included in the budget are Service contracts to carry out the following:
  • Pre-feasibility studies
  • Feasibility studies
  • Economic and financial analysis
  • Detailed design
  • Preparation of tender dossiers for works and supervision contracts
  • Legal and Transaction Advisory Services

The following costs are not eligible:
  • Items not actually paid
  • Items incurred before the implementation contract was signed
  • Debts and provisions for losses or debts
  • Interest owed
  • Items already financed in another framework
  • Purchases of land or buildings
  • Currency exchange losses
  • Any taxes, including VAT

FINANCING RULES

  • Costs must be inserted without any taxes (including VAT)
  • Applicants will have to provide in their applications, a detailed explanation of the activities to be implemented and the results to be achieved by the implementation of each activity
  • Costs must be recorded in the beneficiary’s accounts or tax documents. They should be identifiable and verifiable, and be backed up by the original supporting documents
  • The contribution of the beneficiary is a mandatory prerequisite to a project’s approval.
  • The currency to be used for each project will be agreed with the beneficiary
  • The exchange rate for operations in a different currency is the one published by the Reserve Bank of South Africa on the day the transaction takes place

Eligibility Criteria

Each application will undergo a screening to assess suitability in terms of the PPDF objectives. All applications will be subjected to the following criteria which must be met:

a) Sector or Strategic Fit: Project is within the priority sectors considered by the PPDF.

b) Development Impact: The project improves the quality of life of its citizens.

c) Regional priority: The Highest decision-making authority is in support of the project and the project should be in the Regional Infrastructure Development Master Plan of SADC.

d) Institutional Capacity: The project should currently have capacity or should have credible plans to add capacity towards management and project implementation.

Additional Priority Criteria
It is important to note that applications will also be prioritised against certain additional priority criteria such as:
  • Enhancement of regional integration Support for the reduction of inequalities in the SADC Region
  • Improvement of local development capacities and increased access to services Support for the development of the local labour market and improved opportunities for employment and skills development
  • Promotion of sustainable socio-economic development, with a particular focus on pro-poor growth
  • Support for environmental measures Leverage of important sectoral reforms in the SADC region
  • Support for higher risk activities for which access to finance is limited.