• Financial sustainability of projects funding: The Diagnostic Analysis highlighted the challenges related to the financial sustainability of project funding. In order for projects to be successfully funded, it is necessary that they are financially viable and sustainable. The overall estimates of the investment programme of the RIDMP are summarised below, however, it has to be noted that some of the approved projects have not been costed and therefore have not been accounted for in the summary; Sector Energy Program Description Energy generation and grid connections Transport Construction and maintenance ICT Complete broadband connectivity Meteorology Improved equipment, manpower and expertise Water Investment projects and studies Tourism TFCA facilities investment (TFCAs) plans Total Initial Investment Cost (US$ million – US$ billion) 290.00 – 420.00 100.00 – 100.00 21.40 – 21.40 0.19 – 0.19 15.41 – 15.41 1.10 – 1.10 428.10 – 558.10 • Partnership with private sector in infrastructure development: Research studies and, as determined by the RIDMP, public financing of infrastructure, continues to face challenges owing to fiscal limitations and competing needs from other urgent socio-economic sectors. In order to address this challenge, the RIDMP advocates the adoption of joint publicprivate partnership participation in regional infrastructure development. In practice, some SADC Member States have invited the private sector to partner with government on investment in infrastructure, either as sole investors or in the form of PPPs. The RIDMP also recommends that Member States need to explore the elimination of monopolies and institutionalise open access options where the services are more amenable to the private sector; and • Adoption of the user pays principle: One of the key challenges to the sustainability and rehabilitation of infrastructure, as observed by the Diagnostic Analysis of the RIDMP, is the lack of cost-reflective tariffs application for the usage of infrastructure, which has resulted in limited resources for maintenance and the dilapidation of infrastructure. In the case of power projects, this has adversely affected the securing of Power Purchase Agreements owing to the non-viability of projects operated on current sub-economic tariffs. If the region is to attract investment, it is important that it migrates to cost-reflective tariffs across all sectors and that Member States examine, if necessary, the cushioning of the disadvantaged through other means that do not prejudice the ability to foster maintenance to prescribed standards. Executive Summary 17