Government and business leaders across Africa have come to accept Public-Private-Partnerships (PPPs) as a means of procuring and financing infrastructure projects.
An increasing number of countries are developing PPP policies and frameworks that typically reflect the institutions, procedures, and rules needed to implement the partnerships in each nation. PPP units are being established and staff with the necessary regulatory and technical skills are being appointed or trained.
International, regional and national development finance institutions are gearing up to support governments in developing significant pipelines of PPP projects.
A practical example of this collaboration is Tanzania, where the government is working with the World Bank to refine and increase the capacity of its PPP framework, guidelines and practitioners. The NEPAD Business Foundation (NBF) and the SADC Banking Association (SADC BA) have just completed the first pilot.
PPP Foundation Course in Dar es Salaam, which was attended by senior officials and bankers.
It is important that local banks participate in the development of PPP frameworks, project pipelines and even contribute to setting guidelines. These capacity building opportunities not only empowers governments and bankers, it also strengthens their professional networks and leads to an understanding of their interdependence and joint responsibilities. Both parties are required to collaborate in setting – and following – the rules, overseen by a strong regulator.
The NBF, a Johannesburg based non-governmental organisation and an APMG Accredited PPP Training Organisation, suggests that governments should consider relevant PPP principles when procuring major projects. These include:
- The life cycle cost of the project
- The transfer of risk to the private sector
- Value for money
These principles enhance governments long term integrated financial planning and budget processes, as well as highlighting significant contingent liabilities.
The NBF, since its accreditation in February 2017, has trained 180 government and private sector PPP practitioners.