The challenges of financing municipalities' water and sanitation infrastructure by a development finance institution

Thesis (MBA)--North-West University, Potchefstroom Campus, 2012.The purpose of the research is to investigate whether there are capacity challenges within the municipalities that essentially affect the bridging finance for the water and sanitation infrastructure by the Development Finance Institution (DFI). An extensive literature review has been conducted in order to get information regarding a variety of research work done in the areas of capacity constraints within the municipalities, in particular the municipalities in the North West Province and the funding from the Development Finance Institution, more important whether the two are linked. The research provides an investigation into how the DFI can link the funding with the project implementation capacity in pursuit of achieving strategic objectives. To collect the relevant information for the study, the researcher used a quantitative method, with a questionnaire that was distributed to potential respondents within the selected beneficiary municipalities, the DFI namely the DBSA, the Provincial Government (Department of Infrastructure), and community structures. A satisfactory response rate has been achieved, indicating reliability of the results. The data has been analyzed by using the statistical methodologies, and the results were interpreted to verify if they confirm or disapprove the research objectives. Key findings of the study are discussed and conclusions drawn based on the results. The results indicate that there are no capacity constraints and therefore the funding of the DFI is not necessarily affected. They disprove the hypothesis that the bridging finance is affected by capacity (project implementation) constraints within the beneficiary municipalities – it did not necessarily disprove it, but the literature supports the argument.Master