Restating the Case for Public
Private Partnerships
in Zimbabwe
Professor Paul V. Mavima, MP
Deputy Minister of Primary and Secondary Education
pvmavima@gmail.com
Presentation at the
Zimbabwe Mining and Infrastructure Indaba, 2013
Harare International Conference Center, Harare
September 26, 2013
1
Overview
• The need for PPPs in
Zimbabwe
• The status of PPP legal and
institutional framework
• Way forward
2
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
3
Comparative Quality of
Infrastructure
Namibia
26
Botswana
43
South Africa
46
Zimbabwe
79
Malawi
116
Zambia
118
Lesotho
122
Mozambique
126
0
20
40
60
80
100
120
140
Inadequate Spending on Maintenance
Transport Routine Maintenance, 2009
Actual
15
6 3
Required
90
0
20
Roads
40
46
60
Rail
80
100
8
120
Civil aviation
140
160
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
6
Historical Overview
• 2004 PPP Guidelines
– Promulgated by the Ministry of Finance
– Provide general guidelines, but non-binding
– Provided for institutions most of which remained nonfunctional
• 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
7
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
8
Overview of Recommended
Process
9
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
10
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).
11
Thank you!
Questions and Discussion
12