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The monetisation of infrastructure value as a financial instrument to fund private finance for infrastructure development
Thesis (PhD)--Stellenbosch University, 2025.
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| Format: | Thesis |
| Language: | English |
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Stellenbosch : Stellenbosch University
2025
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| _version_ | 1867613822146052096 |
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| access_status_str | Open Access |
| author | Adams, Russell John |
| author2 | Wium, Jan |
| author_browse | Adams, Russell John Wium, Jan |
| author_facet | Wium, Jan Adams, Russell John |
| author_sort | Adams, Russell John |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description | Thesis (PhD)--Stellenbosch University, 2025. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/134493 |
| institution | Stellenbosch University (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:42:14.156Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/134493 The monetisation of infrastructure value as a financial instrument to fund private finance for infrastructure development Adams, Russell John Wium, Jan Khatleli, Nthatisi Stellenbosch University. Faculty of Engineering. Dept. of Civil Engineering. Infrastructure (Economics) Economic development projects -- Finance Financial instruments Finance, Public Thesis (PhD)--Stellenbosch University, 2025. Adams, R. J. 2025. The Monetisation of Infrastructure Value as a Financial Instrument to Fund Private Finance for Infrastructure Development. Unpublished doctoral dissertation. Stellenbosch: Stellenbosch University [online]. Available: https://scholar.sun.ac.za/items/394ab90c-8a67-4564-979e-79ddf2598519 ENGLISH ABSTRACT: Efficient infrastructure provision drives economic growth, yet infrastructure supply often fails to meet demand, resulting in persistent deficits. Despite the availability of private infrastructure finance, investment remains limited due to the absence of infrastructure funding or project-derived revenue streams needed to repay the finance raised. Existing legal, contractual, and regulatory mechanisms appear inadequate for producing and allocating these funding or revenue streams to attract significant private capital. Increased private investment could reduce infrastructure deficits and enhance economic growth. This study developed a theory to monetize the economic value produced by infrastructure assets, converting this value into a revenue stream. This is theorised to be achieved by unitising the taxation commission on the additional economic growth produced by infrastructure. This unitised taxation growth is converted into a series of tax credit tokens redeemable against their holder’s tax liabilities over time. This temporal stream of tax credit token redemptions acts as a revenue stream that can be leveraged and sold to facilitate private financing acquisition to support infrastructure provision. This financial instrument differs from traditional debt instruments such as bonds as the risk of non-repayment by the issuer is eradicated but replaced with the redemption risk of the holder. This research is theoretical and focuses on theory building while incorporating early-phase testing. A literature review and disciplined imagination methods were used iteratively to develop and test the theory, its operational contractual schema, underlying mathematical equations, and its inherent risk typology allocation. Desktop experiments applied the derived formulae to assumed and empirical data to assess validity and cost efficiency. Finally, expert interviews refined the theory and evaluated its plausibility. This theory proposes issuing tax credit tokens at construction commencement, redeemable over the infrastructure’s lifespan as a funding mechanism. The redemption of these tokens is offset against investor’s future tax liabilities producing a revenue stream for the investor. Their issuance, governed by the developed mathematical equations, is administered through a structured contractual schema involving key infrastructure stakeholders. This schema includes a contracting authority, tax credit token issuer, security company, independent certifier, and construction and operations contractors. An updated risk typology, adapted from the public-private partnership model, serves as a practitioner’s guide and confirms the absence of fatal flaws in the schema. The study concludes that issuing and redeeming tax credit tokens enables the capture and conversion of infrastructure-generated economic value into a funding and consequent revenue source. This financial instrument could attract private investment while reducing delivery costs compared to traditional project finance. Economic efficiency requires ensuring that the additional tax revenue generated matches or exceeds the issued tax credits. Using infrastructure elasticity relative to GDP, experiments showed that in many cases, only a portion of the additional tax revenue during the infrastructure asset’s assumed useful life was needed to repay financing and was deemed highly efficient. The research concludes that the proposed theory plausibly monetizes infrastructure value and presents a plausible mechanism to facilitate additional private infrastructure investment and should be further developed to help address infrastructure deficits. AFRIKAANSE OPSOMMING: Geen opsomming beskikbaar. Doctoral 2025-12-11T08:11:31Z 2025-12-11T08:11:31Z 2025-12 Thesis https://scholar.sun.ac.za/handle/10019.1/134493 en Stellenbosch University 547 pages : illustrations application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Infrastructure (Economics) Economic development projects -- Finance Financial instruments Finance, Public Adams, Russell John The monetisation of infrastructure value as a financial instrument to fund private finance for infrastructure development |
| title | The monetisation of infrastructure value as a financial instrument to fund private finance for infrastructure development |
| title_full | The monetisation of infrastructure value as a financial instrument to fund private finance for infrastructure development |
| title_fullStr | The monetisation of infrastructure value as a financial instrument to fund private finance for infrastructure development |
| title_full_unstemmed | The monetisation of infrastructure value as a financial instrument to fund private finance for infrastructure development |
| title_short | The monetisation of infrastructure value as a financial instrument to fund private finance for infrastructure development |
| title_sort | monetisation of infrastructure value as a financial instrument to fund private finance for infrastructure development |
| topic | Infrastructure (Economics) Economic development projects -- Finance Financial instruments Finance, Public |
| url | https://scholar.sun.ac.za/handle/10019.1/134493 |
| work_keys_str_mv | AT adamsrusselljohn themonetisationofinfrastructurevalueasafinancialinstrumenttofundprivatefinanceforinfrastructuredevelopment AT adamsrusselljohn monetisationofinfrastructurevalueasafinancialinstrumenttofundprivatefinanceforinfrastructuredevelopment |