eiz conference 2010

8/8/2019 EIZ Conference 2010

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Sydney Ngoma*, Mundia Muya, Chabota Kaliba

Department of the Civil and EnvironmentalEngineering, University of Zambia, P.O Box

32379, Lusaka, Zambia.

*Email address: [email protected]


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Delivery of public sector

infrastructure through

Public PrivatePartnerships: an

opportunity for Zambia


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A Public-Private Partnership is a contractual agreement

between a public agency and a Private sector entity.

Through this agreement, the skills and assets of eachsector (public and private) are shared in delivering a

service or facility for the use of the general public. In

addition to the sharing of resources, each party

shares in the risks and rewards potential in thedelivery of the service and/or facility.

source: www.ncppp.org

Public-Private Partnerships Defined


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P P PPublic Sector Partnership Private Sector(Service Requirement) (Service Delivery)

Public-Private Partnerships Defined


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Demands

General Citizenry

Increasing Populations

Business Development reform

Special Interests

Budgetary Limitations

Dwindling donor aid

Stricter fiscal targets

Why Use Public-Private Partnerships?


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B = Build

D = Design

F = FinanceM = Maintain

L = Lease

O = Operate

T = Transfer

BOT,BBO, DBO, DBFOM,LOM, etc.

Any Combination = PPP

Forms of Public-Private Partnerships?


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Infrastructure Reform and Development

in Zambia

Mid 1970s Governments responsibility

- Favourable economic environment

Early 1990s Liberalized economy ( Privatisation)

- Market driven economy

Year 2004 Government realised need for PPP

- Framework development Year 2009 PPP enactment through Parliament

- Implementation


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Infrastructure Needs in Zambia

Transport

HealthInstitutional

Education

Others : Environment, Water, Electricity, production and many others


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SECTOR PROJECTS

Roads Road Sector Investment Plan (RoadSIP) with a total investment of

US$ 1.6bn over a ten year period (2004- 2013)

Energy Rehabilitate and upgrade existing Hydro power stations and buildnew ones; build new thermal power station in Maamba , Rural

electrification

Sports

Infrastructur

e

Rehabilitate Independence Stadium and build a new stadium in

Ndola

Health New cancer Research Centre in Lusaka, Lusaka and District

hospitals, rural and per-urban clinics, Nursing schools

Housing Both for public sector workers and for the private sector

Water &

Sewerage

Rehabilitate and build new water dams, water reticulations systems

including its associated sewage disposal systems in both urban and

rural areas

Roads Kitwe-Chingola Dual Carriageway (52Km) & the Chingola-Solwezi

Road (173Km)


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SECTOR PROJECTS

Railway Construction of the Chingola-Solwezi Railway link, rehabilitation of

the TAZARA rail line currently jointly owed by Tanzania and Zambia,

(may be commercialized or privatized)

Border Posts New boarder posts at Nakonde, Kasumbalesa and other border

posts through PPPs initiatives.

Airports Upgrading Lusaka and Livingstone International

Airports

Multi-facility

Economic

Zones in

Lusaka and

Chambeshi

Multi-Facility Economic Zones are planned for and the Chinese have

already started building the other one in Chambeshi and investors

are sought for the one planned for Lusaka South

Kazungula

Bridge and

Boarder

posts

Linking Zambia, Zimbabwe and Botswana, Feasibility study has been

funded by the African Development Bank


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The Potential Role of PPPs in Zamnia

Transport

HealthInstitutional

Education

Others : Environment, Water, many others


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Country GNP in US$

Millions

No. of PPP

Projects

Total Investment

(US$Million)

SOUTH AFRICA 5390 32 25341

TANZANIA 350 21 2115

MOZAMBIQUE 340 15 2241

MAURITIUS 5450 11 549

MADAGASCAR 280 9 216

DRC 130 7 915

MALAWI 170 6 133

ZAMBIA 630 6 944

ZIMBABWE - 5 841

NAMIBIA 3230 5 104

ANGOLA 180 5 834

LESOTHO 1030 3 114

SEYCHELLES 8650 3 94

BOTSWANA 590 2 247

SWAZILAND 2430 1 53


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Benefits of PPP for Zambia

Cost Savings

Risk

Sharing

Improved levels of services and maintenance

Enhancement of revenue

More efficient implementation

Economic benefits


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SUSTAINABLE

DEVELOPMENT

Good Governance

Institutional Capacity

Human Capacity

Transparency and Civil Society Participation

Economic Policy

Long-term Focus

Sectoral DiversificationAsset Investment Strategy

Fiscal Management

Revenue Stabilization

SavingsExchange Rate Management

Achieving Sustainable Development


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Conclusion

PPPs are the vehicle of the 21st

Century in which public services will

be increasingly delivered in the Zambia

and throughout the developing

countries


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Conclusion

Contracts, special project vehicles (Promoters),detailed customised structures and financial

instruments for each PPP must be appropriately

worked out because each project is unique from

the other.

There is therefore great need to continuously

improve the PPP operating environment and

research further on how the opportunities in PPPcan be best explored and implemented in Zambia

in order to produce the beneficial and profitable

results for both the public and private sectors.


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END

eiz conference 2010

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