The Critical Infrastructure Programme (CIP) is a cost sharing grant for projects designed to improve critical infrastructure in South Africa. The grant covers qualifying development costs from a minimum of 10% to a maximum of 30% towards the total development costs of qualifying infrastructure. It is made available to approved eligible enterprise upon the completion of the infrastructure project concerned.
Infrastructure for which funds are required is deemed to be ‘critical’ if the investment would not take place without the said infrastructure or the said investment would not operate optimally.
- Support competitiveness by lowering business costs and risks;
- Provide targeted financial support for physical infrastructure; and
- Stimulate upstream and downstream linkages
- A cash grant to a maximum of 30% capped at R30 million of the development cost of qualifying infrastructure.
- Public sector entities such as municipalities;
- Private investors / companies.
The CIP is a non-refundable cash grant that covers between 10% and 30% of the total cost of specific infrastructure developments.
Typically the kind of project that will qualify for assistance under this programme has two main elements: an investment project and a supporting infrastructure project.
The investment project is either the undertaking of a new defined fixed investment or the expansion of an existing fixed investment in one of the following categories:
What is Infrastructure?
Infrastructure should support the investment project and would be considered critical if the investment project cannot function without the existence of the infrastructure. The following categories of infrastructure will qualify for assistance under the programme:
When is Infrastructure Critical?
The construction of the infrastructure will be considered “critical” and thus eligible for assistance if the investment would not take place without the infrastructure, and without the CIP funding contribution OR if the investment and infrastructure projects can go ahead without the CIP contribution, but it can be proved that it would be of a smaller scale, lower quality or would be established at a later stage than the period when it is needed.