National Public Private Partnership Policy 2015-2020

OBJECTIVE

To facilitate and promote Public Private Partnerships (PPPs) in creation of new infrastructure assets as well as for the management of existing ones.
Improved quality and quantity of basic infrastructure such as the provision of water and its treatment, energy supply and transportation;

• Improved Planning and Project: construction is usually completed to plan and to budget;
• Repairs and maintenance are planned at the outset and in consequence assets and services are maintained at a pre-determined standard over the full length of the concession;
• PPPs help the public sector develop a more disciplined and commercial approach to infrastructure development whilst allowing them to retain strategic control of the overall project and service;
• The risk of performance is transferred to the private sector. The private sector only realizes its investment if the asset performs according to the contractual obligations. As the private sector will not receive payment until the facility is available for use, the PPP structure encourages efficient completion, on budget without defects;
• Better quality in design and construction than under traditional procurement. PPP focuses on the whole life cost of the project not simply on its initial construction cost. It identifies the long term cost and assesses the sustainability of the project;
• The use of private finance enables the public to have access to improve services now, not years away when governments spending programme permits;
• The expertise and experience of the private sector encourages innovation, resulting in shorter delivery times and improvements in the construction and facility management processes. Developing these processes leads to best practice and adds value;
• The process helps to reduce government debt and to free up public capital to spend on other government services;
• The tax payer benefits by avoiding paying higher taxes to finance infrastructure investment development;
• PPP projects can deliver better value for money compared with that of an equivalent asset procured conventionally;
• The PPP process requires a full analysis of projects risks at the outset. This fuller examination of risks by both the government and lenders means that cost estimates are robust and investment decisions are based on better information; and
• PPPs create efficient and productive working relationships between the public and private sector

CONTENT

The PPP is an agreement between the government and the private firm under which the firm delivers an asset, a service, or both in return for payments contingent to some extent on the
long-term quality or other characteristics of outputs delivered. The objectives of this national PPP policy are to:
The Key guiding principles of the Policy are as follows:

• PPP projects offer “value for money”;
• PPP projects serve a public interest;
• The risks are properly allocated between the public and private sector;
• The projects are procured on the basis of clearly specified output requirements;
• The users contribute to project costs according to their ability/willingness to pay;
• Projects are procured in a competitive process;
• Environmental and social standards are respected; and
• Accountability and transparency (including stakeholder consultation) are built into the project development and implementation process.