Written by National Treasury - South Africa
24 April 2019
Capital planning guidelines provide guidance on how infrastructure programs and project proposals should be planned, appraised and evaluated before significant funds are committed. The guidance encourages a lifecycle evaluation process, which is analytically robust. The National Treasury evaluation process recommendations are made to the Medium-Term Expenditure Committee (MTEC), which in turn advises the Ministers Committee on the Budget (MINCOMBUD) on projects that should be allocated funding. The guidelines bring together the key principles involved in deciding whether a project is good, and worth the government s investment. A funnel through which projects can be sifted is set out and includes: assessing projects for alignment with the country s strategic considerations; whether there is truly demand for the project; whether it represents the most cost-effective option; whether it is affordable; and whether it is likely to be implementable.