Working together
Water, energy, transport PPPs welcomed
Partnerships in the water, energy and transportation sectors are being sought, according to finance minister Calle Schlettwein who recently shared the framework of the proposed public-private partnerships (PPP) at a recent stakeholder engagement hosted by Standard Bank and PwC.
Began Schlettwein: “Different line ministries and other public institutions in the country are working on developing a number of public-private partnership initiatives. These are in the core infrastructure sectors like energy, water and transport as well as social and economic sectors like housing, healthcare and tourism. A number of relevant and innovative projects are under consideration.”
Presenting the opportunities, Schlettwein said, “In the logistics sector, potential public-private partnership projects include investments in rolling stock as well as rail track upgrading and operation of specific freight-intensive rail routes. In the energy sector, a number of privately financed renewable energy generation facilities have already been developed and are in operation, and further investments are planned in this area; including wind, solar and biomass projects. Potential opportunities also abound in the water sector. In the health sector, installation and ongoing operation and maintenance of specialised diagnostic equipment is contemplated.”
Inviting potential investors, he said that given the potential of PPPs to enhance the delivery of infrastructure and services in a wide spectrum of sectors, he encourages and urges the various responsible government institutions to work on preparing and bringing bankable projects to market.
He also used the occasion to speak strongly into the issue of value for money.
“I believe that we need to acknowledge and embrace the dichotomy that through public-private-partnerships we channel relatively expensive private capital for developing the projects that would serve the public at large, and thus where affordability will be an important consideration. Given this key consideration, a public-private-partnership project will be a suitable solution only if we are able to derive substantial efficiencies from the involvement of the private sector.”
He added: “We believe that value for money can be further enhanced by the two fundamental principles of output orientation and competitive procurement.”
The public-private-partnership framework has since been presented to the National Assembly.
OGONE TLHAGE
Began Schlettwein: “Different line ministries and other public institutions in the country are working on developing a number of public-private partnership initiatives. These are in the core infrastructure sectors like energy, water and transport as well as social and economic sectors like housing, healthcare and tourism. A number of relevant and innovative projects are under consideration.”
Presenting the opportunities, Schlettwein said, “In the logistics sector, potential public-private partnership projects include investments in rolling stock as well as rail track upgrading and operation of specific freight-intensive rail routes. In the energy sector, a number of privately financed renewable energy generation facilities have already been developed and are in operation, and further investments are planned in this area; including wind, solar and biomass projects. Potential opportunities also abound in the water sector. In the health sector, installation and ongoing operation and maintenance of specialised diagnostic equipment is contemplated.”
Inviting potential investors, he said that given the potential of PPPs to enhance the delivery of infrastructure and services in a wide spectrum of sectors, he encourages and urges the various responsible government institutions to work on preparing and bringing bankable projects to market.
He also used the occasion to speak strongly into the issue of value for money.
“I believe that we need to acknowledge and embrace the dichotomy that through public-private-partnerships we channel relatively expensive private capital for developing the projects that would serve the public at large, and thus where affordability will be an important consideration. Given this key consideration, a public-private-partnership project will be a suitable solution only if we are able to derive substantial efficiencies from the involvement of the private sector.”
He added: “We believe that value for money can be further enhanced by the two fundamental principles of output orientation and competitive procurement.”
The public-private-partnership framework has since been presented to the National Assembly.
OGONE TLHAGE
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