Pub­lic pri­vate part­ner­ship (PPP) Pol­icy 2016 launched

Bhutan Times - - Home - Staff Re­porter

The Pub­lic Pri­vate Part­ner­ship (PPP) Pol­icy 2016 and Pub­lic Pri­vate Part­ner­ship Rules and Reg­u­la­tions 2017 was of­fi­cially launched by the Min­is­ter for Fi­nance Nam­gay Dorji in cap­i­tal last Fri­day. These rules and reg­u­la­tions will con­trib­ute to­wards im­prov­ing so­cioe­co­nomic de­vel­op­ment of the coun­try.

The gov­ern­ment had rec­og­nized the im­por­tance of in­vest­ment in in­fra­struc­ture to ac­cel­er­ate so­cio-eco­nomic de­vel­op­ment has em­barked on pro­mot­ing Pub­lic Pri­vate Part­ner­ship (PPP) as a key strat­egy for achiev­ing sus­tain­able eco­nomic growth. Con­sid­er­ing the sub­stan­tive role played by the pol­icy in har­ness­ing pri­vate sec­tor in­vest­ments and their op­er­a­tional ef­fi­cien­cies, the gov­ern­ment has ap­proved the PPP Pol­icy in 2016.

Pub­lic Pri­vate Part­ner­ship (PPP) is a long term ar­range­ment be­tween pub­lic and pri­vate sec­tors to lever­age pri­vate sec­tor re­sources and ex­per­tise in meet­ing the grow­ing de­mand of in­fra­struc­ture de­vel­op­ment, though shared risk and re­sources.

This pol­icy pro­vides a struc­tured, transpar- ent and in­sti­tu­tion­al­ized ap­proach to PPPs – es­tab­lish­ing uni­form pro­ce­dures across var­i­ous sec­tors and en­sur­ing fair and equal ac­cess to PPP projects. It cov­ers all in­fra­struc­ture and ser­vices that are af­ford­able to the Gov­ern­ment, end-users and rep­re­sent value for money. Fur­ther, it sup­ports the de­vel­op­ment of vi­able and fea­si­ble pro- jects as PPPs that shall of­fer rea­son­able returns to the pri­vate sec­tor, bet­ter ser­vice de­liv­ery op­tions for the cit­i­zens, while pro­tect­ing the Gov­ern­ment from fis­cal risks.

Ac­cord­ingly, to op­er­a­tional­ize the pol­icy, the Min­istry of Fi­nance for­mu­lated the Rules and Reg­u­la­tions 2017, in close con­sul­ta­tion with key stake­hold­ers with an ob­jec­tive to pro­vide more spe­cific guid­ance in de­sign­ing and im­ple­ment­ing PPP projects. These Rules and Reg­u­la­tions shall es­tab­lish an en­abling en­vi­ron­ment for pri­vate in­vestors to par­tic­i­pate in pub­lic pri­vate part­ner­ship projects with trans­par­ent and stream­lined process.

These rules and reg­u­la­tions shall be ap­plied to all new projects be­ing planned or so­licited for de­vel­op­ment through the pub­lic pri­vate part­ner­ship model.

The Min­istry of Fi­nance in or­der to ef­fec­tively fa­cil­i­tate the im­ple­men­ta­tion of pub­lic pri­vate part­ner­ship pro­gram has es­tab­lished a unit un­der the Depart­ment of Macroe­co­nomic Af­fairs, in 2016.

The Pub­lic Pri­vate Part­ner­ship (PPP) Pol­icy 2016 and Pub­lic Pri­vate Part­ner­ship Rules and Reg­u­la­tions 2017 will con­trib­ute to­wards im­prov­ing so­cio-eco­nomic de­vel­op­ment of the coun­try.

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