PPP framework presented to NAAll systems go for public-private partnerships The finance minister explained the nitty-gritty of the planned public-private-partnership framework this week. The formalisation of the public-private-partnership framework is at an advanced stage, says the minister of finance, Calle Schlettwein.He made the announcement at an event hosted by auditing firm PricewaterhouseCoopers and Standard Bank Namibia.
“Government has made steady progress towards the public-private-partnership agenda. In line with the policy, the Public-Private Partnerships Directorate has been set up at the Ministry of Finance since April last year,” Schlettwein said.
“The formulation of the PPP legislation is also at an advanced stage. The draft bill, as many of you would know, is now before the National Assembly.”
Schlettwein emphasised that the aim of the bill was to ensure that best practices would be followed during all phases of a public-private-partnership project development cycle.
To ensure this, he said: “The legislation contemplates that a sequence of reviews are made and corresponding approvals or disapprovals are provided by a public-private-partnership committee that is constituted as per provisions of the legislation.
“For instance, at the feasibility stage; the review will assess if the planned project is likely to provide positive value for money; the project is likely to be affordable both to the end consumers and to the government; and the project is likely to generate sufficient returns for a private sector investor.
“Only if such conditions are satisfied at the feasibility assessment stage, will the relevant project be allowed to proceed to the procurement phase,” the minister explained.
“We are cognisant that public-private partnerships are a relatively new discipline in Namibia, and for this reason, the PPP Unit facilitates a number of capacity development initiatives. This is done through a combination of structured training programmes, knowledge sharing discussions with both public- and private-sector organisations, as well as forum presentations and media publications.
“Through these capacity-building initiatives, we have attempted to emphasise that core principles of value for money, affordability, and competitive procurement must be adhered to in order to ensure public-private partnerships that are successful and are in the public interest. “We also frequently provide feedback in cases where public-private partnerships may not be a suitable mode of project development,” Schlettwein said.
STAFF REPORTER