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Restating the Case for Public Private Partnerships

in Zimbabwe

Professor Paul V. Mavima, MPDeputy Minister of Primary and Secondary Education

pvmavima@gmail.com

Presentation at the Zimbabwe Mining and Infrastructure Indaba, 2013

Harare International Conference Center, HarareSeptember 26, 2013

OverviewOverview

• The need for PPPs in Zimbabwe

• The status of PPP legal and institutional framework

• Way forward

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The need for PPPs• Recovering lost ground• Inadequate supply of

infrastructure facilities affects competitiveness (129 out of 139 in terms of GCI)

• Inadequate public sector resources to rehabilitate and expand all infrastructure ($4.6 billion of private resources needed of a total $14.2billion)

• Infrastructure bedrock for achieving MTP and realizing country’s overall aspirations

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Comparative Quality of Infrastructure

Inadequate Spending on Maintenance

Highlights of Sector Specific Infrastructural Needs

• Electric power faces a 1,000 MW deficit to meet current demand

• $ 4.3 billion needed to boost generation and other capacities in the electric power sector

• $2.2 billion needed for water storage and transportation

• $1 billion needed for the rehabilitation and improvement of sanitation facilities

• $4.2 billion needed for the rehabilitation of road, rail and aviation infrastructure

• Serious rehabilitation and expansion needs in social infrastructure

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Historical Overview • 2004 PPP Guidelines

– Promulgated by the Ministry of Finance – Provide general guidelines, but non-binding– Provided for institutions most of which remained non-

functional

• 2009 Capacity Building Workshop for PPPs for Economic Development – Review state of uptake – Review international best practice – Reenergize the country around the concept– Recommended a revamp of the existing guidelines and

development of a PPP enabling framework

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UNDP Funded Framework Review

• Legislative Review– Recommended making PPP regulations under a particular Act

• Draft PPP Policy– Rationale, institutional framework, roles and responsibilities and

approval process

• Draft PPP Institutional Framework– Responsible authorities, Inter-ministerial committee on PPPs,

PPP Unit, Ministry of Finance, Cabinet and its Committees

• Draft PPP Guidelines– Project identification, feasibility, prequalification, bidding

negotiation and contract management

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Overview of Recommended Process

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Highlights of the Legislative Principles• Ministries identify and submit

proposals of Projects to PPP Unit, participate in selection process and manage contracts

• Treasury approves budget and commits funds for the project at start of procurement

• PPP Unit – Body corporate warehouses expertise on PPPs and advices ministries throughout the PPP process

• PPP Function location potentially split between Treasury and the Presidency

• OPC responsible for championing while Treasury supervises the deal making

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Way Forward • Establish a PPP Task force within the

Office of the President and Cabinet (operate synergistically with SERA)

• Pass the PPP Bill during the current session of Parliament

• Align the Policy Document and Guidelines to the Act

• Launch the Policy and the Guidelines

• Convert PPP Task Force into PPP Unit

• Actively participate in regional PPP networks (SADC PPP Network, AP3Network) and global events (PPP Days)

• Tap into expertise provided through specialist bodies within international development agencies (PPIAF, UNECE International Centre for PPP Excellence, the 3P Institute in Washington DC).

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Thank you!

Questions and Discussion

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