Public Finance and Infrastructure

Public Finance and Infrastructure

The Pegasys team has produced exceptional client solutions in the area of public finance and infrastructure leveraging our diverse experience and interdisciplinary focus.

Public finance and infrastructure projects require rigorous economic and institutional analysis. Often considered and addressed separately, Pegasys endeavours to understand and articulate the interface between these disciplines exploring their interrelations throughout the project. Many of our projects include multiple departments or agencies, both domestic and international, requiring interdisciplinary focus and analysis. We have found that this approach enables us to mediate between disparate parties with often divergent strategies to create a comprehensive solution that addresses the core of the project. Our consultants, with specialties in energy, water, finance, institutions, amongst others, are trained to navigate and negotiate this dynamic space.

Pegasys offers consulting services at both micro and macro levels. We deploy economic and social analytical tools to consider public finance investments in which success is measured against multi-variate indicators. Our analytical framework has allowed us to be particularly successful in structuring and managing economic integration and transformation processes in the water and transport sector. Pegasys is uniquely placed to consider and respond to strategic questions within the infrastructure and public finance space as stakeholders continue to rely on multi-variate analysis.

Latest projects

Business case for a National Infrastructure Agency
Development of a business case for an agency to develop and manage national water infrastructure, including corporate form, governance and institutional arrangements, financial arrangements, organisational design and human resources.

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Feasibility Study and Business Case for Infrastructure Revolving Fund
Project leader on the development of a business case for a revolving fund to finance water infrastructure refurbishment, maintenance and repair, including considerations on financial requirements and financial arrangements, corporate form and organisational design.

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Business Case for a Public Transport Operating Subsidy
Project leader on the functional establishment of the operating entity to manage government’s responsibility in the restructured gross contract public transport system in the Western Cape. Responsibilities include development of detailed financial arrangements, budgeting and financial systems, organisational design and strategic support to strategic direction and business planning.

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Business Case for a Water Exchange within the Department of Water Affairs
Project leader on the conceptual design and viability assessment of a water exchange institution to facilitate and administer the South African water market. Included consideration of conceptual model, distinguishing complex market models, establishment of pricing systems, organisational implications, financial arrangements and detailed risk analysis.

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Financial analysis for a National Water Resources Infrastructure Agency (DWAF)
Technical coordination and evaluation of institutional, governance and organisational arrangements for the establishment of a National Agency to manage R40 billion of water resources infrastructure assets in South Africa.

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Considerations on the Financial Viability and Support of Catchment Management Agencies in South Africa
The National Water Act calls for the establishment of 19 Catchment Management Agencies (CMAs) to undertake most of the water resource management tasks currently done by DWAF. There has been limited integrated analysis of the potential financial viability and support requirements of all 19 CMAs. With the imminent establishment of up to 10 CMAs in the next 18 months, it is imperative that the implications of various policy decisions on CMA viability be assessed to guide this critical process. This paper presents an assessment of the financial implications of the proposed rate of CMA establishment and delegation of functions to full functionality, together with policy recommendations to increase the potential financial viability of CMAs, without placing an excessive financial burden on the fiscus.

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Economics of Marginal Land-use in Sugar Cultivation.
An economic and financial assessment of marginal land-use in the cultivation of sugar cane in South Africa and Zambia, including a productivity / profitability – cost analysis at field, enterprise and industry level, and the implications of this on land and water use.

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Maximize Benefit To Cost Ratio Of Water Resources Monitoring Programmes In South Africa
Development and testing of a methodology for the assessment of direct financial costs and economic benefits of information generated through 4 DWAF national water monitoring programmes, to provide guidance in the future expansion or rationalisation of these programmes and others.