MEFMI Introduces Capacity Building on PPPs

In realization of the important role the Public-Private Partnerships (PPPs) plays in providing alternative source of financing public investments, MEFMI has included management of PPPs amongst the areas of capacity building. The first activity was a regional workshop on Managing PPPs held from 13 to 17 June 2016 in Swaziland. The main objective of the workshop was to enhance capacity of debt managers and other stakeholders on effective management of PPPs with a view of tapping their benefits while minimizing the inherent risks.

During her opening, Mrs. Dumsile Magagula, Head of Policy and Planning in the Ministry of Finance & Planning in Swaziland, commended MEFMI for organizing the training at the time when countries globally, including those in the region are increasingly adopting PPPs as alternative and viable means of financing infrastructure projects. She further noted that while PPPs offer benefits, they may entail costs and fiscal risks and the challenge is to maximize the benefits while minimizing their costs and potential fiscal risks. She, therefore, urged countries to develop skills and acquire the necessary ideas and knowledge to inform creation of beneficial and sustainable partnerships. Speaking earlier, on behalf of the Director of the Debt Management Programme at MEFMI, Mr. Lekinyi Mollel, cautioned member countries against using PPPs as substitutes for government commitments. He urged countries to consider PPPs as complement to governments’ commitments in supplying public goods.    The training brought together the mid to senior level government officials dealing with public debt management, monitoring and/or management of PPPs and public investments from ministries of finance and planning, central banks and other government ministries and agencies. A total of 26 officials from eight (8) countries participated in the workshop (Chart 1). Messrs Dev Useree (international consultant), Tumisang Moleke from South African National Treasury, and Lekinyi Mollel of MEFMI.

The workshop was delivered through a combination of PowerPoint presentations, case studies as well as sharing country experiences. The presentations covered key concepts and issues on managing PPPs, including: the PPP project cycle; Legal framework and institutional arrangements for managing PPPs; making PPP projects feasible; measuring and assessing value for money; fiscal risks and contingent liabilities; standardization of PPPs; feasibility study and procurements; managing PPP contracts; management of unsolicited bids; and, tariff rates strategies and cost recovery.

Participants from Kenya, Mozambique, Tanzania and Uganda shared their country experiences on managing PPPs with emphasis on legal frameworks, institutional arrangements, successes and challenges. Overall, the workshop was successful in achieving its objectives. About 86% and 96% of participants rated the workshop from high to very high and met their expectations, respectively.