Public private partnership (PPP) Policy 2016 launched
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.