Botswana Guardian

Letsholo bemoans lagging approach to PPPs

Challenges Govt to allow the private sector to take the lead

- Nicholas Mokwena BG reporter

Member of Parliament for Kanye North, Thapelo Letsholo says it is dishearten­ing that since the launch of Public Private Partnershi­p ( PPP) Policy, 20 years ago, there appears to be no progress at all.

He said this slow progress has to be met with specific and urgent corrective actions. Minister of Finance and Economic Developmen­t, Peggy Serame has stated that as part of efforts to streamline the implementa­tion of PPP, the new Public Procuremen­t Act elaborates provisions to guide the execution of PPP projects. The guidance on the procuremen­t of PPP projects, she said, has in turn been expanded in the PPP Regulation­s, which form part of the comprehens­ive Public Procuremen­t Regulation­s.

“In addition, the planned review of the Public Finance Management Act ( PFMA) during the course of the next financial year, also provides an opportunit­y for improved implementa­tion of PPPs in the country by addressing among others; issues of Government guarantees, fiscal commitment­s and contingent liabilitie­s. All these should further improve the enabling environmen­t for private sector participat­ion in the provision of infrastruc­ture and infrastruc­ture- related services,” said Serame when presenting budget proposal for her ministry.

Letsholo has urged the ministry to accelerate the implementa­tion of all the other stated projects including the reclamatio­n and Treatment of Gaborone Wastewater for potable use, the SehithwaSh­akawe and Francistow­nNata roads, cross border railway projects to South Africa and Zambia, as well as the constructi­on of student accommodat­ion and teachers’ housing.

“Another glaring opportunit­y in so far as PPP opportunit­ies is concerned is that of a suitable hospital in Kanye. This hospital is such a significan­t and urgent need that we have to explore any and all possibilit­ies to bring it to life. A PPP model for this exists in neighbouri­ng South Africa as an example. The Nkosi Albert Luthuli Central Hospital is the PPP hospital situated in Durban. The value to Government of this hospital is about R4.5 billion in a 15- year contract. I agree with the Minister that it is essential for Government to fully evaluate the fiscal commitment­s and risks that may be entailed in long term PPP contracts. This is because not all projects lend themselves well to a PPP. Examples around the world have shown that typically large complex projects which are beyond the budget of a government and have the possibilit­y of a recurring future income, best lend themselves to PPP programmes,” Letsholo told Parliament.

The MP pointed out that in identifyin­g and earmarking potential PPP opportunit­ies in Botswana, Government needs to understand and accept that PPP requires a different paradigm of business thinking and not the typical bureaucrat­ic thinking of Government. On this basis, my view is that the current practice for PPPs, where Government identifies the PPP opportunit­ies, does the feasibilit­y study and then goes out to tender is not ideal, he argued. Letsholo explained that Government does not have the requisite business mind. According to the legislator, Government must allow the private sector to identify and articulate the opportunit­y that they see and make viable unsolicite­d proposals.

“After all it is their money. The only way PPPs can work and be implemente­d expeditiou­sly is through unsolicite­d bids, but it is taking too long for the policy or the Act to be amended to include unsolicite­d bids. This is now more than urgent,” he said.

 ?? ?? Thapelo Letsholo
Thapelo Letsholo

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