PPPs require careful planning, Nyamadzabo

Government wants to first conduct due diligence before it enters into joint ventures with private companies, hence the delays in the implementation of Public-Private-Partnerships (PPPs), says Dr. Taufila Nyamadzabo.

The Secretary for Economic Affairs in the Ministry of Finance said government will not rush to implement the PPPs as it wants to safeguard the country’s interests. “There has been a slow pace in implementing PPPs and I think the major issue is how to guard the government interests in the process when implementing PPPs,” said Nyamadzabo.

He was addressing delegates during a budget review meeting organised by First National Bank Botswana. “It’s not that we just get money from the private sector but what we need to do is also to protect government interests when implementing PPP projects,” he said, adding that negotiations should also be done properly.

Another cause for delays in implementing PPPs is the lack of specialists in the area.“There has been also a problem in staffing the unit that is going to be responsible for PPPs,” he said.

Nyamadzabo however said the government has trained many people in the country to be involved in PPPs. He however revealed that government joint ventures with private companies were in the pipeline such as Morupule B to extend production by 300 megawatts.

Meanwhile Minister of Finance and Development Planning, Kenneth Matambo said the government approved the Strategy on Private Sector Participation in Land Servicing in April 2015. “Among the areas already identified for piloting the initiative include Gerald Estate Block 1 and Central Business District in Francistown, Kasane, Ramotswa, and Morwa/Bokaa area in Kgatleng District,” said the minister.

He said under this strategy, the private sector is expected to participate in land servicing. PPPs are complex contractual arrangement between the government and the private sector incorporating a specific time and risk sharing relationship.

The advantages of PPPs include risk sharing, accountability, innovation and best practice methodologies accompanied by clear monitoring and regulation.